OpenAI to Stop Supplying Models to Cursor After SpaceX Acquisition
OpenAI is ending its contract to supply models to Cursor following SpaceX’s $60B acquisition, with access shutting off on 12 November. Cursor and SpaceXAI shipped Grok 4.5 together in July, which is available in Cursor on every plan.
Reasons given for the termination are directly related to SpaceX’s previous conduct. OpenAI expressed its inability to trust SpaceX to honour its terms of service, citing instances where Elon Musk’s companies have violated contracts in the past.
Bloomberg initially reported the news. OpenAI also published the same notice on X and its website.
Two main points were raised: SpaceX’s acquisition of Twitter breached OpenAI’s terms, and xAI violated them as admitted by Musk under oath this year.
The buyer completed its purchase this month. SpaceX closed the $60B all-stock acquisition of Cursor after agreeing it in June.
OpenAI stated it gave the maximum notice its contract allows, approximately two and a half months. Their upcoming model, Astra, will not be supplied to Cursor. They further expressed their willingness to go above and beyond to support developers transitioning.
However, the impact on developers is significant. Europe’s cloud switching rules, effective since September 2025, allow customers to switch on two months’ notice and port their assets within 30 days, with no charges from January 2027. But these rules do not explicitly address scenarios where a supplier abruptly ends service.
Unclear is whether these rules protect European developers on Cursor who received only 75 days’ notice, granted by a contract they never saw, with no statutory backing.